Guillermo is currently in the process of projecting how much his firm will have to spend on supplies, travel, rent, advertising, and salaries for the coming financial year. Guillermo is working on the:

a) capital budget.

b) advertising budget.

c) operating (master) budget.

d) cash budget.

Answer: C

Jackie Jones is a finance manager for Pretty Poseys, a wholesale florist. As finance manager, which of the following would be one of Jackie's responsibilities?

a) Preparing tax returns

b) Preparing financial statements

c) Planning for spending funds on long-term assets, such as plant and equipment

d) Production planning and resource development

Answer: C

Which of the following is true of the use of computers in accounting?

a) Computers can free up accountants to do important tasks, such as financial analysis and forecasting.

b) Computers have been programmed to make their own financial decisions.

c) Computerized accounting systems have actually made the accounting process slightly more complicated because of the need to understand the software.

d) Computerized accounting systems are primarily used only in large corporations.

Answer: A

Which of the following would be considered a current asset?

a) Accounts payable

b) Copyrights

c) Buildings

d) Accounts receivable

Answer: D